The Ontario Securities Commission (OSC) claims that Binance has rescinded its commitment to comply with previously agreed requirements. The crypto exchange told the regulator that there will be no new transactions involving residents of Ontario after December 31. However, Binance recently informed its Ontario users that they no longer have to close their accounts until the end of the year.
OSC says Binance’s action is ‘unacceptable’
Cryptocurrency exchange Binance ran into trouble with the Ontario Securities Commission (OSC) on Thursday. Binance informed its users in June that Ontario was becoming a restricted jurisdiction and that users may be required to close their accounts. However, the crypto exchange on Wednesday sent a letter to its users stating:
As a result of ongoing and positive cooperation with Canadian regulators, Ontario users have no need to close their accounts by December 31, 2021.
The exchange also informed its users: “Binance in Canada has been successful in taking its first step on the regulatory path by registering as a currency services business with Fintrack in Canada. allows business to resume in Ontario while we pursue full registration.”
However, the Ontario Securities Commission issued a notice on Thursday “informing investors that Binance is not registered under securities law in Ontario.”
“Binance informs OSC staff that no new transactions involving residents of Ontario will occur after December 31, 2021,” the regulator wrote.
Binance has issued a notice to users to cancel this commitment without notice to OSC. this is unacceptable.
“None of the entities in the Binance group of companies hold any type of securities registration in Ontario,” the Canadian regulator stressed. This means that they are not authorized to offer trading in derivatives or securities to persons or companies located in the province.
The OSC clarified: “Unregistered platforms operating in Ontario may be subject to action, including temporary orders to ensure compliance, which may affect their ongoing local business operations.”
The regulator further explained that there are currently six crypto-asset trading platforms registered in Ontario.
In addition to Canada, Binance has had trouble with a number of regulators in other jurisdictions, including the US, UK, South Africa, Australia, Norway, Netherlands, Hong Kong, Germany, Italy, India, Malaysia, Singapore, Turkey and Lithuania.
The exchange says it is currently focusing on compliance. This week, Binance received in-principle approval from the Central Bank of Bahrain to operate a cryptocurrency services provider in the country.
What do you think about Binance’s position with OSC in Canada? Let us know in the comments section below.
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